A decision on whether to syndicate the facility has not yet
been made, one of the people said, asking not to be identified
as the details are private.

Citigroup is providing a so-called bridge loan to ENN
Energy, according to a joint statement released today in Hong
Kong by Sinopec, as China Petroleum is commonly known, and ENN
Energy. A bridge loan is a short term loan that is usually
replaced by longer term financing.

Sinopec (386) and ENN Energy are offering HK$15.3 billion ($2
billion) cash, or HK$3.50 a share, for the Hong Kong-based
company that supplies piped gas to China, according to the
statement. The offer is 25 percent more than China Gas’s Dec. 12
close. Its shares closed at HK$3.37 today.

Buying China Gas will give Sinopec and ENN Energy access to
its 6.6 million residential customers and 41,981 industrial and
commercial users in the world’s second-biggest economy.

The loan will be split into two parts, one to fund the
acquisition of shares as well as costs, fees and expenses
related to the offer, and the other to refinance or repay a $150
million loan signed by ENN Energy in November 2009, according to
the document.

The first part will mature five months after the funds are
first used while the second will mature on May 31 next year,
according to the statement. Bank of China Ltd. helped arrange
the 2009 loan, according to the statement.

The new loan will be guaranteed by ENN Gas Investment Group
Ltd. and ENN Gas Hong Kong Investment Ltd. ENN Energy has agreed
that on or before May 31 2012, the repayment or prepayment of
the facility will equal at least $250 million, according to the
statement.

Citigroup is the financial adviser to ENN Energy and
Sinopec, according to the statement.